Former SEC Chairman Jay Clayton Is A Member Of Legal Firm Representing FTX

December 26, 2022 11:02 am Comments

3 months prior to filing for bankruptcy, FTX enlisted the help of the financial legal firm, Sullivan & Cromwell.

FTX paid millions to the bankruptcy law firm and was even accused of pressuring SBF into declaring bankruptcy, according to allegations made by Sam Bankman-Fried.

However, what wasn’t widely reported is that Jay Clayton, the former chairman of the SEC, is a member of the Sullivan & Cromwell legal group as a senior policy advisor and an advisor to legal counsel…

Here is what we currently know:

Clayton is listed in Cromwell & Sullivan’s directory as a Senior Policy Advisor and a Senior Advisor of Counsel:

Below is a payment schedule of money sent from FTX to Sullivan & Cromwell from August 26th, 2022 until November 3rd, 2022 for the right to retain the legal firm as counsel:

According to Coin Telegraph:

Based on the information provided, FTX paid at least $15.5 million to avail and retain the legal services of S&C. The filing further revealed that S&C currently holds nearly $9 million of the $12 million retainer amount.


ALM Law claims:

Before he was arrested in the Bahamas on Monday, FTX founder Sam Bankman-Fried had planned to give congressional testimony the following day alleging that Sullivan & Cromwell attorneys pressured him, his co-workers, family, and friends to get the embattled founder to seek Chapter 11 bankruptcy protection.

Citing the $700 million in legal fees generated by the Enron bankruptcy, which Ray and Sullivan & Cromwell also handled, Bankman-Fried implied that Miller coordinated with Ray and Sullivan & Cromwell to get the firm signed on as lead bankruptcy counsel.

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